A Ministry of Trade employee has sued Platinum Credit Ltd, seeking Sh11 million as compensation after the lender repossessed his PSV matatu, which had been used as security for a loan.
Daniel Wachira, an Assistant Director and National Coordinator at the National Trade Facilitation Committee of Kenya, claims he had sold the matatu for Sh720,000 on April 24, 2020, to Michael Gitau, who was being financed by Platinum credit.
He claims after providing the necessary documentation and transferring the vehicle to Gitau, he was assured that Platinum Credit would deposit the purchase price to his Bank Account , but the money was never remitted.
The complainant told a Thika Law court that after some months, he realised that the lender had registered the vehicle under movable property security on May 4, 2020, without honouring their payment agreement.
Wachira says upon realisation, he reported the matter at the Thika Police Station and wrote to the National Transport and Safety Authority (NTSA) asking to place a caveat on the vehicle to protect it.
Despite this, he told the court that the lender’s auctioneers repossessed and impounded the matatu on July 14, 2020, while it was still under his possession.
Wachira told the court that before the dispute he operated the matatu as a public service vehicle, earning an average of Sh5,000 daily, and is now seeking compensation for the lost income and damage to the vehicle for the said period.
Platinum Credit and the other defendants have denied liability, arguing that the vehicle was voluntarily offered as collateral for a loan of Sh280,000 and an insurance premium of Sh66,839.
They maintain that the loan agreement allowed them to impound the vehicle upon default and recover the outstanding debt and related costs.
The defendants have asked the court to dismiss the suit with costs, arguing that the plaintiff has not established a cause of action against them.
Onesmus Kimani Mbugua, the broker who linked Wachira to the buyer, testified that the lender failed to pay the agreed purchase price to Wachira.
He said the lender informed them that the money had instead been deposited into Gitau’s account, contrary to their agreement.
Resident Magistrate Evelyn Kithinji directed the parties to file their final submissions within 21 days. The matter will be mentioned on February 11, 2027.
By Muoki Charles
